Avago Share Price Soars High, Following an Acquisition of Broadcom Corp

avago-technologiesTo put the company into a better competitive position, Avago Technologies Ltd recently acquired Broadcom Corp at $35-billion. The company majors in manufacturing chips for wireless communication. This acquisition improved the value of the company to $70 billion and caused the Broadcom shares to surge by 20 percent, within a single day. Currently, the market share by Avago stands at 40 percent. This acquisition will improve this market share even further.

Prior to this deal, none of the two companies had a good individual competitiveness, mainly because of the large competitors, such as Qualcomm Inc and Intel Corp. Initially, the company was an established consolidator in the chip industry. The acquisition of LSI Logic at $6.6 billion back in 2013 helped the company to diversify into storage devices.

On Wednesday, the company recorded an improvement of 7.76 percent at NASDAQ, with each share priced at $141.49. However, the share prices dropped a few hours later to settle at $140.00.

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